Federal opens U.S. subsidiary

ESSEN, Germany (May 25, 2016) — Taiwan tire maker Federal Corp. has established a U.S. subsidiary in Torrance, Calif., to support its dealers/distributors in North America and help drive marketing and advertising.

The new company, Federal Tire North America L.L.C., opened May 1 and is led by Federal veteran Jason Lee, according to Federal Chairman Jamie Ma, speaking to Tire Business at the Reifen 2016 trade show in Essen.

Among the unit's responsibilities will be to learn the American market, monitor the regulatory scene and track vehicle and tire trends. The unit does not have warehousing, Mr. Ma said, because the Taipei, Taiwan-based firm doesn't want to interfere with its existing customers' businesses.

Mr. Ma also said construction of Federal's second Taiwan plant, in Taoyuan, is complete, and the factory has begun test production. Federal expects to begin full-scale commercial production of car, SUV and light truck tires by this fall.

The plant is scheduled to have a nameplate capacity of 6 million passenger and light truck radials a year, Mr. Ma said, including ultra-high-performance sizes.

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